Abstract
As the backbone of urban public transport, metro has a great promoting effect on the development of social economy. However, most metro companies suffer losses in the world. With the expansion of business scope, the diversification of business types and increased profit channels, MTR has become one of the models of the global railway operation industry. To refer to MTR's management experience, and explore its key business to realize profit and its practical lessons, it’s necessary to analyze the profit structure of MTR from 2012 to 2014. According to characteristic of MTR business, the profit structure is reconstructed as three major business sectors: passenger transport and its related business, property and its related business, and other business, and the profit structure from 2012 to 2014 is analyzed from total profit constitution and profit source structure. The results show that MTR’s profit source structure is highly consistent with its business model “Railway + Property”, its passenger transport and property all have strong profitability and each accounting for half of the total profit. For the metro enterprises in mainland China, it should adhere to the development pattern of “Metro + Property” and give full play to the linkage effect of metro and property development, so as to achieve self-sustainable development. It should not only manage well passenger transport and its related businesses, but also manage well property and its related businesses. At the same time, it is also of great significance to explore the flexible fare adjustment mechanism, control and reduce the cost of passenger transport and innovate the valuation model of investment property, etc.
Highlights
As the backbone of urban public transport, metro has a great promoting effect on the development of social economy
An integrated profit model for rail transit and land development is introduced to promote the urban rail transit to step into a sound development path [3]
Through the analysis of the profit structure of MTR from 2012 to 2014, it is found that the operation of MTR has the following characteristics: 1) MTR's business model is “Railway + Property”, and MTR's structure of profit source is in good agreement with its business model
Summary
As the backbone of urban public transport, metro has a great promoting effect on the development of social economy. MTR Corporation (“MTR”) has won the recognition from government and citizens with scientific management way, advanced management idea and good service attitude. The business scope gradually expands, the business type gradually diversifies, and the profit channel gradually increases. Through the analysis of the profit structure of MTR from 2012 to 2014, the author aims to explore the key business to realize profit and its practical lessons, so as to provide a reference for the development of metro in mainland China
Sign-in/Register to view highlights & summary 
Published Version (
Free)
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
